Response to the following problem:
PepsiCo, Inc., has aggressively acquired other companies. Assume that PepsiCo purchased Kettle Chips Co. for $11 million cash. The market value of Kettle Chips' assets is $15 million, and it has liabilities of $10 million.
Required
1. Compute the cost of the goodwill purchased by PepsiCo.
2. Record the purchase of Kettle Chips by PepsiCo.